Icahn Enterprises L.P. (IEP) vs Ultrapar Participacoes S.A. (UGP)

Icahn Enterprises L.P. and Ultrapar Participacoes S.A. are both Oil & Gas Refining & Marketing companies. Ultrapar Participacoes S.A. is the larger, with a market value of $6.0B against $3.7B — 1.6× the size. Icahn Enterprises L.P. has negative trailing earnings, so its P/E is not meaningful; Ultrapar Participacoes S.A. trades at 8.8×. Ultrapar Participacoes S.A. grew revenue faster over the last twelve months: 20.2% against 16.1%. Ultrapar Participacoes S.A. has the higher net margin (2.29% vs −9.20%) and the higher return on invested capital (15.3% vs 0.00%). Both pay a dividend; Icahn Enterprises L.P. yields more (38.8% vs 6.75%). Across the 21 metrics below, Ultrapar Participacoes S.A. leads on 18 and Icahn Enterprises L.P. on 3.

Valuation

Metric IEP UGP Oil & Gas Refining & Marketing median
P/E n/m 8.84 8.38
P/S 0.33 0.21 0.33
P/B 2.36 1.50 1.70
Price to free cash flow n/m 4.06 5.86
EV/EBITDA 7.67 4.21 4.96
EV/Sales 0.49 0.27 0.46
Earnings yield (29.84%) 11.31% 9.67%
Free cash flow yield (1.35%) 24.61% 15.55%

Profitability

Metric IEP UGP Oil & Gas Refining & Marketing median
Gross margin 0.00% 8.44% 10.93%
Operating margin 0.00% 4.95% 7.14%
Net margin (9.20%) 2.29% 2.70%
Free cash flow margin 2.79% 5.52% 6.17%
Return on equity (40.79%) 18.40% 21.95%
Return on assets (7.68%) 7.25% 5.76%
Return on invested capital 0.00% 15.25% 13.74%

Growth

Metric IEP UGP Oil & Gas Refining & Marketing median
Revenue growth (TTM) 16.07% 20.23% 26.02%
EPS growth (last fiscal year) 44.68% 2.90% 37.92%
Revenue growth, 5-year CAGR 9.54% 10.10% 13.17%
Net income growth, 5-year CAGR 0.00% 20.45% 0.00%

Health

Metric IEP UGP Oil & Gas Refining & Marketing median
Debt to equity 4.07 0.96 0.41
Current ratio 0.00 1.64 1.31
Net debt to EBITDA 1.12 2.02 2.07

Dividend

Metric IEP UGP Oil & Gas Refining & Marketing median
Dividend yield 38.76% 6.75% 2.20%
Payout ratio — 0.62 0.25

Size

Metric IEP UGP Oil & Gas Refining & Marketing median
Market cap 3.65b 5.95b 3.91b

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